LexThe Maharashtra Krishna Valley Development Corporation Act, 1996
Maharashtra · state statute
Open in Lexace · Ask the AI about this act1996 : Mah. XV] 1
THE MAHARASHTRA KRISHNA VALLEY DEVELOPMENT
CORPORATION ACT, 1996
[Text as on 13th November 2024]
—————
CONTENTS
PREAMBLE.
SECTIONS.
CHAPTER I
PRELIMINARY
1. Short title, extent and commencement.
2. Definitions.
CHAPTER II
ESTABLISHMENT, CONDUCT OF BUSINESS AND EMPLOYEES
OF THE CORPORATION
3. Establishment of Maharashtra Krishna Valley Development Corporation.
4. Constitution of Corporation.
5. Executive Committee.
6. Disqualifications for membership and removal of members.
7. Meetings of Corporation.
8. Constitution of committees.
9. Provision for inviting officers of Government and local authority.
10. Filling up of casual vacancy of member.
11. Act not to be invalidated by vacancy, informality, etc.
12. Officers and servants of Corporation.
13. Disqualification of all officers and staff.
14. Authentication of orders etc. of the Corporation.
CHAPTER III
VESTING OF PROPERTY, ASSETS, LIABILITIES AND OBLIGATIONS
AND TRANSFER OF EMPLOYEES
15. Vesting and transfer of property to the Corporation.
16. Decision of State Government on vesting of property to be final.
17. Power of State Government to depute certain Government employees to Corporation.
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CHAPTER IV
FUNCTIONS AND POWERS OF CORPORATION
18. Function of Corporation.
19. General powers of the Corporation.
20. Water changes for supply of water for irrigation, industrial and domestic purposes.
21. Responsibility of Corporation for payment of interest on borrowed money.
22. Prohibition of construction of dam, bandhara, weir etc. except with
approval of Corporation.
23. Co-ordination with other authorities to minimise inconvenience caused by submergence.
24. Power to be exercised by Corporation under the Maharashtra Irrigation Act, 1976.
25. Power of State Government to issue directions.
CHAPTER V
ACQUISITION OF LAND
26. Power to acquire land for purposes of this Act.
27. Transfer of Government lands to Corporation.
28. Powers of Corporation to dispose of land, etc.
CHAPTER VI
FINANCE, ACCOUNTS AND AUDIT
29. Application of Corporation’s assets, etc.
30. Fund of Corporation.
31. Contribution of Government to Corporation Fund.
32. Grants, subventions, loans and advances to Corporation.
33. Power of Corporation to borrow.
34. Acceptance of deposits by Corporation.
35. Power to spend.
36. Expenditure on objects other than, irrigation and powers Projects.
37. Allocation of expenditure chargeable to project on main objects.
38. Reserve and other funds.
39. Submission of budget to Corporation.
40. Sanction of budget estimates.
41. Government as Guarantor.
42. Disposal of profits and deficits.
43. Interest charges and other expenses to be added to and receipts
taken for reduction of capital cost.
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Corporation Act, 1996
44. Depreciation Fund.
45. Apportionment of betterment charge levied by State Government.
46. Financial Statement and programme of work.
47. Accounts and Audit.
48. Concurrent and special audit of accounts.
CHAPTER VII
MISCELLANEOUS AND SUPPLEMENTARY PROVISIONS
49. Furnishing of annual reports and accounts returns etc.
50. Rehabilitation and resettlement of the project affected persons.
51. Execution of contracts etc.
52. General penalty.
53. Power of entry.
54. Dues to be recovered an arrears of land revenue.
55. Service of notice etc.
56. Public notice how to be made known.
57. Notice period for performance.
58. Default in performance of duty.
59. Offences by companies.
60. Authority for prosecution.
61. Compounding of offences by Corporation.
62. Penalty for obstruction.
63. Delegation of powers of Corporation.
64. Protection of action taken in good faith.
65. Chairman, Vice-Chairman, Executive Director, Members and Officers, etc.,
to be public servants.
66. Effect of provisions inconsistent with other laws.
67. Power to make rules.
68. Power to make regulations.
69. Power to remove doubts and difficulties.
70. Dissolution of Corporation.
71. Repeal of Mah. Ord. III of 1996 and Saving.
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Corporation Act, 1996
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LIST OF AMENDMENT ACTS
1. Amended by Mah. 11 of 1997 (29-10-1996)1
2. Amended by Mah. 8 of 1999 (16-1-1999)
3. Amended by Mah. 9 of 20002 (8-10-1999)
4. Amended by Mah. 14 of 2000 (11-1-2000)
5. Amended by Mah. 19 of 20043 (27-11-2003)
1 Section 6 of the Mah. XI of 1997 reads as under :
“(1) The Maharashtra Krishna Valley Development Corporation (Amendment) Ordinance, 1996 is hereby repealed.
(2) Notwithstanding such repeal, anything done or any action taken under the said Ordinance shall be deemed to have been
done, or taken, as the case may be, under the principal Act as amended by this Act.”.
2 Mah. Ord. No. XXXI of 1999 was repealed by Mah. 9 of 2000, s. 7.
3 Mah. Ord. No. VII of 2004 was repealed by Mah. 18 of 2004, s. 11.
Note.- The date mentioned in the bracket indicates the date of commencement of the Act.
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Corporation Act, 1996
MAHARASHTRA ACT No. XV OF 19961
[THE MAHARASHTRA KRISHNA VALLEY DEVELOPMENT CORPORATION ACT, 1996.]
[This Act received the assent of the Governor on the 4th April 1966; assent was first published,
in the Maharashtra Government Gazette, Part IV, Extraordinary No. 3, on the 4th April, 1996.]
An Act to make special provisions for promotion and operation of irrigation
projects, command area development and schemes for generation of hydro-electric energy
to harness the water of Krishna River allocated to the State of Maharashtra under the
Krishna Water Disputes Tribunal Award and other allied and incidental activities
including flood control in the Krishna River Valley by establishing the Maharashtra
Krishna Valley Development Corporation.
WHEREAS it was expedient to make special provisions for promotion and operation of irrigation
projects, command area development a nd schemes for generation of hydro-electric energy to harness
the water of Krishna River allocated to the State of Maharashtra under the Krishna Water Disputes
Tribunal Award and other allied and incidental activities including flood control in the Krishna River
Valley by establishing the Maharashtra Krishna Valley Development Corporation;
AND WHEREAS it was considered necessary to immediately make a law for the same;
AND WHEREAS both Houses of the State Legislature were not in session;
AND WHEREAS the G overnor of Maharashtra was satisfied that circumstances existed which
rendered it necessary for him to take immediate action to make a law for the purposes aforesaid; and,
therefore, promulgated the Maharashtra Krishna Valley Development Corporation Ordinance, 1996 on
the 25th January 1996;
AND WHEREAS it is expedient to replace the said Ordinance by an Act of the State Legislature;
It is hereby enacted in the Forty-Seventh Year of the Republic of India as follows :—
CHAPTER I
PRELIMINARY
1. Short title, extent and commencement. — (1) This Act may be called the Maharashtra
Krishna Valley Development Corporation Act, 1996.
(2) It shall extend to the Krishna River Valley in the State of Maharashtra and such other area or
areas, as the State Government may, by notification in the Official Gazette, specify.
(3) It shall be deemed to have come into force on the 25th January, 1996.
2. Definitions.— In this Act, unless the context otherwise requires,—
(a) “Area of operation of the Corporation” means the area of the Krishna River Valley and
any other area or areas to which the provisions of this Act are extended by the State Government
by notification in the Official Gazette under sub-section (2) of section 1;
(b) “Corporation” means the Maharashtra Krishna Valley Development Corporation
established under section 3;
(c) “Hydro -Electric Power Project” means and includes the planning, construction,
maintenance and management of Hydro -Electric Power Projects (except Koyna Hydro -Electric
Power Project), within the area of operation of the Corporation and shall also include such hydro-
electric power projects as are assigned, handed over or transferred to the Corporation by the State
Government;
(d) “Irrigation Department” means the Irrigation Department of the Government;
1 For Statement of Objects and Reasons of the L. A. Bill No. VII of 1996, see Maharashtra Government Gazette , 1996,
Extraordinary No. 3, Part V, dated the 19th March 1996 , page 29.
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Corporation Act, 1996
(e) “Irrigation Project” means the planning, construction, maintenance and
management of—
(i) Major Irrigation Project having irrigable command area of more than 10,000
hectares,
(ii) Medi um Irrigation Project having irrigable command area of more than 2,000
hectares and upto 10,000 hectares,
(iii) Minor Irrigation Project having irrigable command area of more than 250 hectares
and upto 2,000 hectares,
and shall include command area development, flood control and other allied activities;
(f) “Krishna River Valley” means the geographical area from the origin of Krishna River
and its all tributaries within the State of Maharashtra as specified in the Krishna Water Disputes
Tribunal Award;
(g) “Krishna Water Disputes Tribunal Award” means the report of the Krishna Water
Disputes Tribunal, given under section 5( 3) of the Inter -State Water Disputes Act, 1956
(33 of 1956);
(h) “member” means a member of the Corporation designated as Director;
(i) “prescribed” means prescribed by rules made under this Act;
(j) “regulations” means the regulations made under this Act;
(k) “State Government” or “Government” means the Government of Maharashtra.
CHAPTER II
ESTABLISHMENT, CONDUCT OF BUSINESS AND EMPLOYEES OF THE CORPORATION
3. Establishment of Maharashtra Krishna Valley Development Corporation.— (1) The State
Government shall, by 1notification in the Official Gazette , establish for the pur poses of this Act, a
Corporation to be called the Maharashtra Krishna Valley Development Corporation.
(2) The Corporation established under sub -section (1) shall be a body corporate having perpetual
succession and a common seal, with power to contract, acquire, hold and dispose of property, both
movable and immovable, and to do all things, necessary for the purposes of this Act, and may sue and
be sued by its corporate name.
(3) The Head Office of the Corporation shall be at Pune.
4. Constitution of Corporation. — (1) The Corporation shall consist of the following
members, namely :—
(a) the Minister for Irrigation ex officio Chairman;
2[(a-1) two non-official members to be appointed by
Government
Vice-Chairman;]
(b) the Chief Secretary to Government ex officio
Vice-Chairman;
(c) Secretary to Government, Irrigation Department ex officio Member;
(d) Secretary to Government, Irrigation Department,
(Command Area Development)
ex officio Member;
(e) Secretary to Government, Finance Department ex officio Member;
1 See Maharashtra Government Gazette , Part IV -B. Page 283, dated 16 th February 1996 ( Vide G.N., D., No. MKVDC
1195) (212 95 W.R.P. dated 16th February, 1996).
2 This clause was inserted by Mah. 11 of 1997, s. 2(i).
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(f) Secretary to Government, Planning Department ex officio Member;
(g) Secretary to Government, Revenue and Forests
Department (Forests).
ex officio Member;
(h) Secretary to Government, Revenue and Forests
Department (Relief and Rehabilitation).
ex officio Member;
(i) Secretary to Government, Agriculture Department ex officio Member;
(j) three non-official members representing reputed and recognised financial institutions, to
be nominated by the State Government;
(k) five members to be nominated by the State Government, from amongst the members of
the Maharashtra State Legislative Assembly;
(l) two members to be nominated by the State Government, from amongst the members of
the Maharashtra State Legislative Council;
(m) two non -official members to be nominated by the State Government having special
knowledge of pract ical experience, one each from the field of Irrigation and Finance,
respectively;
1[(m-1) one officer, not below the rank of Accountant General, from the cadre of the Indian
Audit and Accounts Services or any other equivalent cadre of the Central Government, to be
appointed by the State Government, shall be designated as the Finance Member of the
Corporation. The Finance Member shall be entitled to take part in the deliberations and
proceedings of the meetings of the Corporation but shall have no right to vote.]
(n) One Officer not below the rank of Secretary to Government, from the cadre of the
Engineering services of the Irrigation Department 2[or from amongst the suitable officers from
any other services’] to be appointed by the State Government as the Member -Secretary of the
Corporation, who shall be designated as the Executive Director of the Corporation. The Executive
Director shall be entitled to take part in all the deliberations and proceedings of the meetings of
the Corporation but shall have no right to vote.
(2) The term of office of nominated members shall be for a period of one year unless terminated
earlier by the State Government:
Provided that, the members of the Maharashtra State Legislature shall cease to be the member of
the Corporation if they cease to be members of the Maharashtra State Legislature.
(3) The non -official members of t he Corporation nominated under 3[clause ( a-1) and ( m)] of
sub-section (1) shall receive such remuneration and allowances as may be laid down by regulations.
(4) The official members of the Corporation shall receive such compensatory allowances, for the
purpose of meeting the personal expenditure in attending the meetings of the Corporation, as may be
laid down by the regulations.
5. Executive Committee. — (1) There shall be an Executive Committee consisting of the
following members, namely :—
(a) Executive Director of the Corporation .. Chairman
(b) Chief Engineer, Irrigation Department, Pune Division. Member
(c) Chief Engineer (Specified Project), Irrigation
Department, Pune Division.
Member
1 This clause was inserted by Mah. 14 of 2000, s. 2.
2 These words were inserted by Mah. 8 of 1999, s. 2.
3 These words, brackets and letters were substituted for the word, brackets and letter “clause ( m)” by Mah. 11 of 1997, s.
2(ii).
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Corporation Act, 1996
1[(d) Chief Engineer of the Corporation .. Member]
2[(d-1) Finance Member of the Corporation Member]
(e) Chief Accounts and Finance Officer of the Corporation Member
(f) Superintending Engineer of the Corporation .. Member-Secretary.
(2) The powers, functions and duties of the Executive Committee shall be such as may be laid
down by regulations.
6. Disqualifications for membership and removal of members. — (1) A person shall be
disqualified for being nominated as a non-official member or continue to be such member, if he,—
(a) is an employee of the Corporation, except the Executive Director;
(b) is of unsound mind, and stands so declared by a competent Court;
(c) is an undischarged insolvent;
(d) is convicted for an offence involving moral turpitude;
(e) has, directly or indirectly by himself or by any partner, employer or employee, any share
or interest, whether pecuniary or of any other nature, in any co ntract or employment with, by or
on behalf of, the Corporation; or
(f) is a Director, Secretary, Manager or other Officer of any company, which has any share
or interest in any contract or employment with, by or on behalf of, the Corporation:
Provided that, a person shall not be disqualified under clause (e) or clause (f) by reason only
of his or the company of which he is a Director, Secretary, Manager or other Officer, having a
share or interest in—
(i) any sale, purchase, lease or exchange of immoveable property or any agreement for
the same;
(ii) any agreement for loan of money or any security for payment of money only;
(iii) any newspaper in which any advertisement relating to the affairs of the
Corporation is published.
(2) The Government ma y remove from the Corporation any non -official member nominated by
the Government, who in its opinion,—
(a) has been disqualified under sub-section (1);
(b) refuses to act;
(c) has so abused his position as a member as to render his continuance on the C orporation
detrimental to the interest of the public, or
(d) is otherwise unsuitable to continue as member.
(3) No order of removal under sub -section (2) shall be made unless the non -official member has
been given an opportunity to submit his explanation to the Government, and when such order is passed
the office of the member so removed shall be deemed to be vacant.
(4) A member who has been so removed under sub -section ( 3) shall not be eligible for
reappointment as member or in any other capacity on the Corporation.
7. Meetings of Corporation.— (1) The Corporation shall meet at such times and places as the
Chairman may decide and shall, subject to the provisions of sub -section ( 3), observe such rules of
procedure in regard to the transaction of business at its meetings (including the quorum thereof) as may
be laid down by regulations:
1 This clause was inserted by Mah. 19 of 2004, s. 2.
2 This clause was inserted by Mah. 14 of 2000, s. 3.
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Provided that, at least one meeting shall be held in every calendar month in such manner so as t o
ensure that not more than thirty days intervene between the two meetings.
1[(2) The Chairman or, in his absence, such of the Vice-Chairman appointed under clause (a-1) of
sub-section (1) of section 4, if both are the Members of the Maharashtra State Legi slature; as may be
predetermined by the Chairman by an order, shall preside over the meeting of Corporation; and in the
absence of all the three, the Chief Secretary to Government, being the other Vice -Chairman shall
preside over such meeting:
Provided th at, if the Vice -Chairman appointed under clause ( a-1) are persons other than the
Members of the State Legislature, the Chief Secretary as the Vice-Chairman shall, in the absence of the
Chairman, preside over the meeting and in the absence of the Chief Secr etary, the other Vice -
Chairman, as may be predetermined by the Chairman by an order, shall preside over such meeting.]
(3) A member, who is directly or indirectly concerned or interested in any contract, loan
arrangement or proposal entered into or proposed to be entered into, by or on behalf of the Corporation,
shall, at the earliest possible opportunity, disclose the nature of his interest to the Corporation, and shall
not be Present at any meeting of the Corporation when any such contract, loan, arrange ment or
proposal is discussed, unless his presence is required by the other members for the purpose of eliciting
information, but no member so required to be present shall vote on any such contract , loan,
arrangement or proposal:
Provided that, a member shall not be deemed to be concerned or interested as aforesaid by reason
only of his being a shareholder of a Company concerned in any such contract, loan, arrangement or
proposal.
8. Constitution of committees. — The Corporation may, from time to time, constitute
committee, or committees out of its members consisting of such number of them as it may think proper
and may delegate to such committee such powers of the Corporation as it may deem fit for carrying out
the purposes of this Act.
9. provision for inviting officers of Government and local authority. — (1) The Corporation
or any of its committees may invite any officer of the Central Government, State Government, local
authority or any organisation of any person to attend its meeting or meetings as a special invitee for the
purpose of assisting or advising it on any matter or matters. The officer so invited may take part in the
proceedings, but shall have no right to vote.
(2) The officer so invited shall be entitled to draw such honorarium or compensatory allowance
for the purpose of meeting the personal expenditure in attending the meetings of the Corporation or any
of its committees as the Corporation may determine, from time to time.
10. Filling up of casual vacancy of member. — Any vacancy of a member of the Corporation
shall be filled as early as practicable, in like manner as if the appointment were being made for the first
time.
11. Act not to be invalidated by vacancy, informality, etc.— No act done or proceedings taken
under this Act by the Corporation or committee appointed by the Corporation sh all be invalidated
merely on the grounds of—
(a) any vacancy of a member or any defect in the constitution or reconstitution of the
Corporation or a committee thereof; or
(b) any defect or irregularity in the appointment of a person as a member of the Co rporation
or of a committee thereof; or
(c) any defect or irregularity in such act or proceedings, not affecting the substance.
1 Sub-section (2) was substituted for the original by Mah. 11 of 1997, s. 3.
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12. Officers and servants of Corporation.— (1) The State Government shall appoint Executive
Director as provided in section 4( 1), 1[2[Chief Engineer,] Finance Member, Superintending Engineer],
and Chief Accounts and Finance Officer not below the rank of Director from the Maharashtra Finance
and Accounts Service for the Corporation.
(2) The Corporation may, with the prior approva l of the State Government, appoint such other
officers and servants subordinate to the officers mentioned in sub -section (1) as it considers necessary
for the efficient performance of its duties and functions.
(3) The conditions of appointment and service of the officers and servants and their
scales of pay shall,—
(a) as regards the officers mentioned in sub-section (1), be such as may be prescribed, and
(b) as regards the officers and servants mentioned in sub -section (2) be such as may be laid
down from time to time by regulations.
(4) Subject to the superin tendance of the Corporation, the Executive Director shall supervise and
control all its officers and employees including any officers of Government appointed on deputation to
the Corporation.
13. Disqualification of all officers and staff. — No person who has, directly or indirectly, by
himself or by his partner or agent, any share or interest in any contract, by or on behalf of the
Corporation or in any employment under, by or on behalf of the Corporation otherwise than as an
officer or staff thereof, shall be qualified to be an officer or staff of the Corporation.
14. Authentication of orders etc. of the Corporation. — All proceedings of the Corporation
shall be authenticated by the Chairman or Vice -Chairman and all orders and instruments of the
Corporation shall be authenticated by the Executive Director or any other officer of the Corporation as
may be authorised in this behalf by regulations.
CHAPTER III
VESTING OF PROPERTY, ASSETS, LIABILITIES AND OBLIGATIONS AND TRANSFER OF EMPLOYEES
15. Vesting and transfer of property to the Corporation. — (1) From such date as may be
specified, from time to time, by the State Government (hereinafter in this section referred to as “ the
appointed date”),—
(a) the properties and assets comprising movable s and immovables including Irrigation
Projects, Hydro-Electric Power Projects, works under construction and management of completed
schemes, specified in that behalf, situated in the area of operation of the Corporation, which
immediately before the appointed date vested in the State Government and were under the control
of the Irrigation Department, shall vest in and stand transferred to the Corporation, and all income
derived and expenses incurred in that behalf be brought on books of the Corporation ; and
(b) the rights, liabilities and obligations of the State Government, whether arising out of any
contract or otherwise pertaining to the said projects of the State Government shall be deemed to
be the rights, liabilities and obligations of the Corporation.
(2) Such properties, assets, rights, liabilities and obligations shall be valued in such manner as the
State Government may determine.
(3) All suits and other legal proceedings with respect to any scheme for the development of
Irrigation Projects and Hydro -Electric Power Projects entrusted to the Corporation, instituted or
defended by or against the State Government before the appointed date may be continued, or instituted,
or defended by or against the Corporation.
1 These words were substituted for the words “Chief Engineer, Superintending Engineer” by Mah. 14 of 2000, s. 4.
2 The words “Chief Engineer” were deleted by Mah. Ord. 13 of 2003, s. 3, with effect from 27 -11-2003, and the same
were inserted with effect from 27-11-2003 by Mah. 19 of 2004, s. 3.
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Corporation Act, 1996
16. Decision of the State Government on the vesting of property to be final. — Where any
doubt or dispute arises as to whether any property or assets has vested in the Corporati on under section
15 or any rights, liabilities or obligations have become the rights, liabilities or obligations of the
Corporation under that section such doubt or dispute shall be referred to the State Government, whose
decision shall be final.
17. Power of State Government to depute certain Government employees to Corporation.— (1)
Where on account of conferment of any powers, duties and functions on the Corporation by or under
this Act, in the opinion of the State Government, any employees in the fiel d establishments, that is,
officers and employees belonging to technical staff as well as ministerial and non -ministerial staff
(permanent, regular, temporary, converted regular permanent, temporary and daily wages) in the
Irrigation Department on the date specified by the State Government engaged in the fields of planning,
investigation, design, construction, management, land development of the state sector, irrigation
projects, lift irrigation scheme and Hydro -Electric Power Projects, have been rendered s urplus or are
likely to be rendered surplus wholly or partially to the requirements of the State Government or where
the services of such officer and servants are required by the Corporation for efficient exercise of its
powers, performance of its duties o r discharge of its functions, the State Government, the Head of the
Department of the State Government or any officer authorised by the State Government in this behalf
may, from time to time having regard to the necessity therefor, by order depute such off icers or
employees to the Corporation, and the Corporation shall take them over and employ them on
deputation, subject to the provisions of this section.
(2) The period of deputation of any such employee to the Corporation shall be five years except
when any such person is required to be repatriated on the grounds such as promotion, reversion,
termination or superannuation or any other reason as may be directed by the State Government. After the
expiry of the period of deputation, he shall stand repatriated to service under the State Government:
Provided that, during the period of such deputation all matters relating to the pay, leave,
allowances, retirement, pension, provident fund and other conditions of service of employees on
deputation shall be regulated by the Maharashtra Civil Services Rule s or such other rules as may, from
time to time, be made by the State Government.
(3) All the regular, permanent and regular temporary permanent employees of the said
establishment transferred on deputation to the Corporation under sub -section (2) shall h ave a lien on
their post in the service under the State Government and the period of their service under the
Corporation shall, on their repatriation to the service under the State Government, be counted for their
increments, pensions and other matters relating to their service.
(4) The Corporation shall have the authority to transfer the officers and staff members within the
area of operation of the Corporation.
(5) No employee on deputation to the Corporation shall be entitled to any deputation allowance.
(6) The salaries and allowances of employees on deputation to the Corporation shall be paid from
the Corporation fund.
(7) Save as otherwise provided in this section, the terms and conditions of services of employees
on deputation to the Corporation sh all not be less advantageous than those applicable to them
immediately before deputation and shall not be varied to their disadvantage except with the previous
sanction of the State Government.
CHAPTER IV
FUNCTIONS AND POWERS OF CORPORATION
18. Functions of Corporation.— The functions of the Corporation shall be—
(a) to promote and operate,—
(i) irrigation projects and command area development including flood control; and
(ii) schemes for the generation of hydro-electrical energy;
14 The Maharashtra Krishna Valley Development [1996 : Mah. XV
Corporation Act, 1996
(b) to plan, investigate, design, construct and manage the irrigation projects and command
area develo pment 1[and to help drip irrigation schemes through the Agricu lture Department of
Government];
(c) to plan, investigate, design, construct and manage the schem es of the genera tion of
hydro-electrical energy;
(d) to enter into contracts in respect of the works and any other matters transferred to the
Corporation alongwith assets and liabilities under this Act;
(e) to invite tenders, bids, offers and enter into contracts for the purposes of all the activities
of the Corporation;
(f) to promote participation of any person or body or association of individuals whether
incorporated or not, in planning, investigation, designing, construction and management of
irrigation projects, and command area development and Hydro -Electric Power Projects including
flood control;
(g) to undertake schemes or works, either jointly with other corporate bodies, or institutions,
or with Government or local authorities, or on agency ba sis in furtherance of the purposes for
which the Corporation is established and all matters connected therewith;
(h) to promote irrigation related activities such as fisheries, pisciculture, floriculture,
horticulture, sericulture, tissueculture, etc;
(i) to promote tourism, water sports and other related activities on and around the Irrigation
and Hydro-Electric Power Projects;
(j) to develop the land around or nearby lake and in other suitable locations with irrigation
facilities and other infrastructure facilities and lease part or whole of such developed properties to
the interested parties;
(k) to prepare annual plan and five year working development plan;
(l) to prepare annual budget;
(m) to undertake any other activities entrusted by the State Government in furtherance of the
objectives for which the Corporation is established.
19. General powers of the Corporation.— (1) The Corporation shall have the power to accord
administrative approval, revised administrative approval, technical sanction, acceptance of all tenders,
sanctioning budget and making financial provisions, settling disputes arising out of contracts and any
other thing which may be necessary or expedient for the purposes of c arrying out its functions under
this Act.
(2) Without prejudice to the generality of the foregoing provision, such power shall include
the power,—
(a) to acquire and hold property, both movable and immovable as the Corporation may
deem necessary for the performance of any of its functions, duties, activities and to lease, sell,
exchange or otherwise transfer any property held by it on such conditions as may be d eemed
proper by the Corporation;
(b) to construct or cause to be constructed such dams, barrages, reservoirs, power houses,
power structures, electrical transmission lines and sub-stations, navigation works, irrigation, flood
control and drainage canals and such other works and structures as may be required;
(c) to take measures to prevent pollution of any water under its control and to take all
measures deemed necessary to prevent discharges into such water of effluents which are harmful
to water supply, irrigation, public health or fish life;
1 These words were added by Mah. 9 of 2000, s. 2.
1996 : Mah. XV] The Maharashtra Krishna Valley Development 15
Corporation Act, 1996
(d) to stock its reservoirs or water courses with fish and to sell fish or fishing rights and
prohibit taking out fish from the water under its control;
(e) to assist in the establishment of water user association a nd other organisations formed
under the Maharashtra Co-operative Societies Act, 1961 (Mah. XXIV of 1961) for the better use
of facilities made available by the Corporation;
(f) to lease rights for water sports, other recreational activities related to the use of reservoir
and its surroundings and reservoir water;
(g) to establish, maintain and operate laboratories, experimental and research stations and
farms for conducting experiments and research for—
(i) utilising the water, electrical energy and othe r resources in the most economical
manner for the development of the Krishna River Valley;
(ii) determining the effect of its operations on the flow conditions in the Kr ishna River
and its tributaries;
(iii) providing navigation condition in the Krishna River and its tributaries;
(h) to engage suitable consultant or person having special knowledge or skill to assist the
Corporation in the performance of its functions;
(i) to do all such other things and perform such acts as may be necessary for, or incidental or
conductive to any matters which are necessary for furtherance of the objectives for which the
Corporation is established.
20. Water charges for supply of water for irrigation, industrial and domestic
purposes.— The Corporation shall, from time to time, determine and levy water charges according to
volume, for supply of water for irrigation, industrial and domestic purposes to the State Government,
local authorities, Government agencies, cultivators and water users associations:
Provided that, the levy of water charges shall be such that water charges so recovered shall be
sufficient at least to cover the interest charges of the loan raised by the Corporation from the open
market.
21. Responsibility of Corporation for payment of interest on borrowed money. — The
Corporation shall pay the interest on the borrowed money through the recovery of water charges.
22. Prohibition of construction of dam, bandhara, weir etc. except with approval of
Corporation.— No person shall construct, operate or maintain within the area of operation of the
Corporation any dam, bandhara or weir or other work or any installation for the extraction of surface
water without the prior approval of the Corporation:
Provided that, the State Government or a local authority may, construct and operate such dams,
weirs, bandharas etc., anywhere or, across any river or basin within such area of operation or assign or
handover such dam, bandhara, weir etc. to the Corporation.
23. Co -ordination with other authorities to minimise inconvenience caused by sub -
mergence.— The Corporation shall keep co -ordination wit h the State Government, Railway
Authorities, local authorities and statutory bodies with a view to minimising the inconvenience likely
to be caused by the submergence of railways, lands and roads and communications and shall bear the
cost of any re -alignment thereof or resettlement of any population rendered necessary by such
submergence.
24. Powers to be exercised by the Corpora tion under the Maharashtra Irrigation Act,
1976.— Nothwithstanding anything contained in the Maharashtra Irrigation Act, 1976 (Mah. XXXVIII
of 1976) and the Bombay Canal Rules, 1934,—
(a) the Corporation may carry out all or any of the functions and exercise all or any of the
powers of the State Government or the appropriate authority; and
16 The Maharashtra Krishna Valley Development [1996 : Mah. XV
Corporation Act, 1996
(b) any officer of the Corporation authorised in this behalf by the Corporation may carry out
all or any of the functions and exercise all or any of the powers of the Canal Officer,
under the provisions of the said Act and the rules, within the area of operation of the Corporation.
25. Power of State Government to issue directions.— The State Government may issue to the
Corporation such general or special directions as to policy or exercise of the powers or performance of
the functions by the Corporation, as it may think necessary or expedient for carrying out the purposes
of this Act and the Corporation shall be bound to follow and act upon such directions.
CHAPTER V
ACQUISITION OF LAND
26. Power to acquire land for purposes of this Act.— The State Government may, for carrying
out the purposes of this Act, compulsorily acquire land under the Land Acquisition Act, 1894
(I of 1894), and the acquisition of any land for any of the said purposes shall be deemed to be a public
purpose within the meaning of that Act.
27. Transfer of Government lands to Corporation.— (1) For the furtherance of the objects of
this Act, the State Government may, by notification in the Official Gazette, upon such conditions as
may be agreed upon between the Governm ent and the Corporation, place at the disposal of the
Corporation any lands vested in the State Government:
Provided that, the State Government shall not place at the disposal of the Corporation any lands
which are notified and included in a reserved forest.
(2) After any such land has been so placed at the disposal of the Corporation it shall be dealt with
by the Corporation in accordance with the provisions of this Act, or the rules or regulations made
thereunder and the directions, if any, given by the State Government in this behalf.
(3) If any land placed at the disposal of the Corporation under sub -section (1) is not required by
the Corporation, the State Government, may ask the Corporation to replace it to the State Government
upon such terms and conditions as may be mutually agreed upon.
28. Power of Corporation to dispose of land, etc. — Subject to any rules made by the State
Government under this Act, the Corporation may retain, lease, sell, exchange or otherwise dispose of
any land, any building or other property vested in it, in such manner as it thinks fit for carrying out the
purposes of this Act.
CHAPTER VI
FINANCE, ACCOUNTS AND AUDIT
29. Application of Corporation’s assets, etc. — All property, fund and other assets vesting the
Corporation shall be held and applied by it, for the purposes of this Act.
30. Fund of Corporation.— (1) The Corporation shall have and maintain its own fund, to which
shall be credited—
(a) all moneys received by the Corporation from the State Government by way of
grants, subventions, loans, advances and the loans raised under this Act;
(b) all fees, costs and charges received by the Corporation under this Act;
(c) all moneys received by the Corporation from the disposal of lands, buildings and
other properties, movable and immovable and other transactions;
(d) all moneys received by the Corporation by w ay of water charges, rents and profits
or from any other source.
1996 : Mah. XV] The Maharashtra Krishna Valley Development 17
Corporation Act, 1996
(2) The Corporation may keep current and deposit account with the State Bank of India or any
other Bank approved by the State Government in this behalf.
(3) Such accounts shall be operated by such officers of the Corporation as may be authorised by it
in this behalf.
(4) Notwithstanding anything contained in sub-sections (2) and (3), the Corporation may keep on
hand such sum as it thinks fit for its day to day transactions, subject to such limits and c onditions as
may be prescribed.
31. Contribution of Government to Corporation Fund.— (1) The State Government shall, by
appropriation duly made in this behalf, from time to time, provide an aggregate sum of no t less than
rupees 3,500 crores to the Corporation Fund, as its share of the capital required by the Corporation for
the performance of the functions of the Corporation under this Act and such contribution shall be paid
in suitable instalments spread over a period of five years from the date of e stablishment of the
Corporation:
Provided that, the State Government shall, by appropriation duly made in this behalf, initially
contribute and pay a sum of rupees 700 crores to the Corporation Fund:
Provided furt her that, the contribution made by the Government shall be exclusive of the
expenditure incurred by the Government for and in connection with the establishment of the
Corporation.
(2) The capital provided by the State Government shall not carry any interest.
32. Grants, subventions, loans and advances to Corporation. — The State Government may,
after due appropriation made by the State Legislature by law in this behalf, make such grants,
subventions, loans and advances to the Corporation as it may deem nec essary for the performance of
the functions of the Corporation under this Act; and all grants, subventions, loans and advances made
shall be on such terms and conditions as the State Government may determine.
33. Power of Corporation to borrow.— (1) The Corporation may, subject to such conditions as
may be prescribed in this behalf, borrow money from the financial institutions or non -resident Indians
or from the open market by issue of guaranteed or unguaranteed bonds, debentures, stocks and
otherwise, for the purpose of providing itself with adequate resources.
(2) The maximum amount which the Corporation may at any time have on loan under sub-section
(1) shall not exceed rupees one thousand crores, unless the State Government fixes a higher maximum
limit for this purpose.
34. Acceptance of deposits by Corporation. — The Corporation may accept deposits on such
conditions as it deems fit from persons, authorities or institutions, to whom allotment or sale of land or
buildings or fishing rights is made or is likely to be made in furtherance of the objects of this Act.
35. Power to Spend.— The Corporation shall have the authority to spend such sums as it thinks
fit for the purposes authorised under this Act from and out of the fund of Corporation referred to in
section 30 or from the reserve and other funds referred to in section 38, as the case may be.
36. Expenditure on objects other than Irrigation and Power Projects.— It shall be competent
for the Corporation to spend, such sums as it thinks fit also on objects authorised under this Act other
than Irrigation Projects and Hydro-Electric Power Projects and such sums shall be treated as common
expenditure payable out of the fund of the Corporation before allocation under section 37 of thiExcerpt shown. Open the full act in Lexace.